Division of Award Clause Samples
The Division of Award clause defines how any monetary or non-monetary awards, such as damages or settlements resulting from a legal action, are to be distributed among the parties involved. Typically, this clause outlines the proportions or specific shares each party is entitled to receive, and may address deductions for legal fees or costs incurred during the proceedings. Its core practical function is to ensure transparency and prevent disputes by clearly specifying how awards are allocated, thereby reducing the risk of future disagreements over distribution.
Division of Award. Tenant shall have no claim against Landlord arising out of or related to any taking, or for any portion of the amount that may be awarded as a result, damages or compensation attributable to damage to the Premises, value of the unexpired portion of the Term, loss of profits or goodwill, leasehold improvements or severance damages, and Tenant hereby assigns to Landlord all its rights, title and interest in and to any such award; provided, however, that Tenant may assert any claim it may have against the authority for compensation for Tenant's Personal Property and for any relocation expenses compensable by statute, as long as such awards shall be made in addition to and stated separately from the award made for the Land, the Building and the Premises.
Division of Award. Tenant shall have no claim against Landlord arising out of or related to any taking, or for any portion of the amount that may be awarded as a result, and Tenant hereby assigns to Landlord all its rights, title and interest in and to any such award; provided, however, that Tenant may assert any claim it may have against the authority for compensation for Tenant’s Personal Property and for any relocation expenses compensable by statute, as long as such awards shall be made in addition to and stated separately from the award made for the Land, the Building and the Premises.
Division of Award. The Lessor and the Lessee shall each be entitled to receive and retain separate awards, or portions of lump sum awards, as are allocated to their respective interests in the condemnation proceeding. The termination of this Lease under this Paragraph shall not affect the rights of the respective parties to such awards.
Division of Award. Out of any award for any taking of Landlord's interest in the Premises, Landlord shall be entitled to receive and retain the amounts awarded for the value of the Ground Lease and Tenant shall have the right to file a claim and/or to obtain an award for the value of the unexpired term of this Lease and all Leasehold Improvements, the building and for the depreciated value of the Fixtures and Equipment and the Tenant's moving expenses and loss of business and the Tenant shall have the right to be a party to the acquisition or condemnation proceeding to make a claim for all of such aforesaid damages.
Division of Award. In the event that an award is made for an entire or partial Taking or for damage to the Premises in any action in direct or inverse condemnation, the parties hereto agree that their respective rights to the award or compensation paid shall be as follows:
(a) To the extent Tenant is required to restore the remaining portions of the Building and/or Improvements as a result of a Taking, then the entire award for the Taking of the Premises and severance damages shall be payable to Tenant up to the cost of restoring the Building and Improvements. Any award in excess of the cost of restoring the Building and Improvements shall be payable to Landlord.
(b) To the extent Tenant is not required to restore the remaining portions of the Building and/or Improvements as a result of a Taking, Landlord shall be entitled to the entire award received for the Taking of the Premises and for any severance damage relating thereto or interest thereon and any damages received as a result of inverse condemnation.
(c) Notwithstanding the provisions of Paragraphs (a) and (b) above, Tenant shall have the right to seek a separate award from the condemning authority for the taking of personal property and fixtures belonging to Tenant and for relocation or business interruption expenses recoverable from the condemning authority.
(d) Tenant shall not be entitled to any portion of the award relating to the fact that Tenant’s interest in this Lease has a bonus value (i.e. that the fair rental of the Premises for all or any portion of the remainder of the Term hereof exceeds the rental reserved under this Lease for such period).
Division of Award. 8 8.3. Condemnation of Less Than a Substantial Portion................... 9 8.4. Condemnation of a Substantial Portion............................. 9 8.5. Arbitration....................................................... 9 8.6. Temporary Taking.................................................. 10 8.7. Appraisal......................................................... 10
Division of Award. Lessor and ▇▇▇▇▇▇ shall each be entitled to receive and retain separate awards, or portions of lump sum awards, as are allocated to their respective interests in the condemnation proceeding. Without limiting the generality of the preceding sentence, ▇▇▇▇▇▇ has no interest in any award made to Lessee for ▇▇▇▇▇▇’s moving and relocation expenses or for the loss of ▇▇▇▇▇▇’s leasehold interest, fixtures and other tangible personal property if a separate award for such items is made to Lessee. The termination of this Lease under this section shall not affect the rights of the respective parties to such awards.
Division of Award. If the order or decree in any condemnation or similar proceeding fails to separately state the amount to be awarded to Landlord and the amount to be awarded to Tenant by way of compensation; damages; rent; cost of demolition, removal, or restoration; or otherwise, and if Landlord and Tenant cannot agree on the amounts within thirty (30) Days after the final award(s) have been fixed and determined, then the value shall be determined by using the following valuation process:
A. Landlord and Tenant, at their respective costs and by Notice to the other, shall each appoint a qualified M.A.I. real estate appraiser with at least five (5) years, full-time commercial appraisal experience in Maricopa County to appraise and set the fair market value of the land upon which the Tenant Improvements have been constructed.
B. If a Party does not appoint an appraiser within ten (10) Days after the other Party has given Notice of the name of its appraiser, then the single appraiser appointed shall be the sole appraiser and shall set the fair market value of the land.
Division of Award. (a) If, during the term of this Lease, the Premises, or any portion thereof, are condemned or taken by any Governmental Authority having the power of eminent domain, or on behalf of which the power of eminent domain may be exercised, the court in such condemnation proceedings shall be requested to make separate awards to Landlord and Tenant as to their respective interests in the Premises, and Landlord and Tenant agree to request such action by the court. This Paragraph 8.2
(a) shall be construed as superseding any statutory provisions now in force or hereafter enacted concerning condemnation proceedings to the extent permitted by law.
(b) In the event that Landlord and Tenant are unable to obtain separate awards with respect to their respective interests in the Premises, then the net award received (after deductions of reasonable fees and expenses of collection, including, but not limited to, reasonable attorney's fees) shall be fairly and equitably apportioned between Landlord and Tenant to reflect their respective interests in the Premises. The portion of the award to be received by Landlord shall reflect the taking of fee simple estate in and to the Land based upon the fair market value of the Land as of the date preceding the day on which title to the Land vests in the condemning authority. In addition, there shall be taken into consideration the fact that the buildings and other improvements constructed on the Land will belong to Landlord upon the expiration of the Term of this Lease., The portion of the award to be received by Tenant shall be based upon the taking and reduction of Tenant's leasehold estate created by this Lease, the taking of any building and other improvements on the Land, loss or interruption of business, and the cost of any restoration or repair necessitated by such taking or condemnation. Such values shall be determined as of the time of condemnation by agreement of the parties or by arbitration in the manner set out in Section 8.5. Landlord and Tenant agree that, in the event they are unable to obtain separate awards, there shall be no settlement of any condemnation award or proceeding without the consent of any Leasehold Mortgagee; it being understood, however, that any such Leasehold Mortgagee shall have rights only in and to Tenant's portion of the award.
Division of Award. If the order or decree in any condemnation or similar proceeding shall fail separately to state the amount to be awarded to the Landlord and the amount to be awarded to the Tenant under the provisions of Sections 15.1 or 15.2 hereof, by way of compensation, damages, rent, the cost of demolition, removal or restoration or otherwise, and if the Landlord and the Tenant cannot agree thereon within thirty (30) days after the final award or awards shall have been fixed and determined, the value shall be determined by